Urjit Patel interview: Demonetisation will result in a downgrade of growth for a short period of time.
From Jallikattu protests to Etah bus accident to Vijay Mallya — here are the top stories for the afternoon bulletin on January 19.
The RBI has faced flak after the government announced its decision to withdraw Rs 500 and Rs 1,000 notes on November 8, 2016 and the way the exercise was handled by the government and the central bank.
The questions put up by the panel ranged from the total amount of money that came back during the demonetisation period to the total amount of new bill that were printed.
The RBI Governor is also scheduled to appear before the Public Accounts Committee of Parliament on the same issue on January 20.
The RBI Governor asked for reviewing and addressing gaps in the existing laws governing financial contracts in India.
Observing that RBI has already notified inflation target of 4 per cent, Patel said the effort should be to achieve the objective of keeping prices under check on a durable basis, given the progress already made.
Patel said that enhanced transparency has helped in reinforcing the stability of India’s financial system.
India Inc on Wednesday expressed disappointment saying a rate cut was needed to provide fillip to the flagging industrial economy and stimulate consumption that has been hit by demonetisation.
RBI was asked to provide details of remuneration given to former RBI Governor Raghuram Rajan and incumbent Urjit Patel.
Patel said the situation arising out of demonetisation is being monitored on a daily basis and the printing presses have started to rebalance the production of new notes towards Rs 100 and Rs 500 bills.
Supporting government’s ambition to make India a cashless economy, RBI Governor Urjit Patel on Sunday urged the people to start using debit cards and digital wallets, saying it will make transactions cheaper and easier and in the long term, it will help India “leapfrog into a less cash-use economy at par with more developed nations.” […]
The RBI governor, who came under attack by the opposition for his silence over the raging issue, emphasised that liquidity in the banking system has increased.